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GigaMedia Ltd. Message Board

  • robert.stromberg robert.stromberg Apr 21, 2010 7:00 PM Flag

    Deal is done when?

    Under the terms of the deal, the price of the 60 percent sale will be set at the fair market value of the business as of early 2012. Mangas will make payment in two parts - an up-front cash payment of US$100 million at closing and a final earn-out payment after the 2012 valuation depending upon the fair market value of the business at that time. GigaMedia will continue to hold the remaining 40 percent interest with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shareholding held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined based upon then fair market value.

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    • actually, that is incorrect. the $100M is received now for the 60%. GIGM will continue to receive royalties on that 60%. (this is really important, and everyone seems to miss it) Plus, GIGM has the right to sell the remaining 40% of the business to Mangas in 2012 at FMV.

 
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